subject: The Truth About Payday Loan [print this page] The Truth About Payday Loan The Truth About Payday Loan
When you browse the internet, markets will show you thousands of results. When you are thinking of filling a loan, especially for those who have a good credit score, the market has a lot to offer you. Some options are highly recommended, and others are not. Examples of these are bank loans, mortgage, payday loans, and student loan. There are just few who consider other factors before saying their insights. Short term loan are said to be not advisable because of the inability of people to show the advantage of payday loans.
Interest rate is the number one in the list- when people are considering a loan. Critics of this type of loan always point out the high interest rate and the period of payment. It is being compared to other Lending Company who provides lower rate at a longer span of time. Calculation of interest can also be confusing, because it computes for the entire year. For me, just to think of how this loan works, how convenient it is to apply and get approved, to have the money ASAP and service it provides- It's already a good reason to be charged for higher interest rate.
Bank loan or any other loan that provides Long term loan and lower interest rate on the other hand, have more requirements. You will have to undergo credit check, submit some files they need, you're lucky if you get the loan in a week, because most of the time it takes 2 or 3 weeks- This is secured loan, meaning as a customer, you will have to provide collateral.-Its understandable that the interest is low. From the time you fail to submit you payment for this type of loan, your credit rating is affected too.
The amount of Loan you customers can make is another factor when considering a loan. For This kind of loans, they have lower amount to lend their customer (Just imagine if you lend a huge amount and you will have to pay it in 30 days. *It just seem impossible)- this makes it understandable- the reality. Long Term Loan can lend you $$$$.$$- this will all depends on how good your record is.
Another factor being considered is the flexibility of the payment plan. Short term type of loan do not have much of installment plan. There are few who does, who understands their customers better than other lending company. While Long Term loans have this option.
Both Loans are being used for different purposes. These short term loans are being used for small emergencies or immediate needs. Long term loans/ Bank loans are for huge expenses. I'm just enjoying the speed, less paper work and no hassle process of this type of loan. I think that is what payday loan critics have to look at that too. Not just the interest.
